Surprising price: Tel Aviv entrance land sold for surprising price

After years of a sought-after and once-polluted plot in Gush Dan laying dormant, the Israel Land Authority revealed last Monday that the tender for building 528 apartments in the HaShalom Ta'as complex at Tel Aviv's entrance was awarded to Acro Real Estate and Keta Group for NIS 644 million plus NIS 67 million in development expenses for a total of NIS 711 million ($191 m.).

This marks a nearly fivefold increase over the minimum price of NIS 140 million. However, the price is significantly lower than recent years' averages, at NIS 1.34 million ($360,000) per apartment. 

Acro Real Estate, securing Complex A for 364 units, will pay around NIS 368 million ($99 m.) excluding development expenses, while Keta Group, winning Complex B for 164 units, will pay about NIS 276 million ($74 m.) excluding development expenses. The competition saw 12 offers.

On the most polluted and sought-after land in Tel Aviv

The IMI Systems Hashalom complex, also known as "Magen Factory," sits within the Nachalat Yitzhak complex on the border of Givatayim between Derech HaShalom and Aliyat HaNoar Street. From 1950 to 1996, the "Magen" defense industrial plant operated there, manufacturing weapons for the military. The site's production processes involved hazardous substances like heavy metals and cyanides, leading to soil and water contamination and posing health risks. 

In 2021, some 25 years after the plant's closure, the state initiated land purification following a tender by the Tel Aviv municipality. Now, with the completion of the work, Rami has marketed the land for constructing hundreds of housing units.

Two complexes, encompassing approximately half a hectare, were auctioned for residential use within the Tel Aviv-Jaffa "Hashalom complex" initiative, featuring dense construction with commercial fronts. These complexes are part of a larger plan covering roughly 5.5 hectares near the Tel Aviv-Givatayim border, divided into a purely residential area and another combining residential and commercial spaces.

The boundaries of the plan are delineated by Shalom Road to the south, Aliyat HaNoar Street to the east, and the employment zone of the Nachalat Yitzhak neighborhood to the north and west.

Within the broader complex, about 1,097 units are planned, including smaller apartments ranging from 50-70 square meters. The architectural design comprises residential buildings spanning 7 to 9 stories, 23-story structures flanking the complex, and a 52-story tower in the northeastern corner, surrounded by open spaces, including a central public area also covering approximately half a dunams.

The development emphasizes high-quality public spaces, diverse functions, and recreational areas for residents. Plans also include expanding employment zones along streets and in public spaces, integrating commercial areas with open public spaces, and preserving the historic IMI building while addressing environmental concerns.

Moreover, the proposal includes vibrant connections from the Nachalat Yitzhak neighborhood to Derech HaShalom Street; the Sderot HaHaskalah intersection, featuring a pedestrian and bicycle boulevard along Hefetz Haim Street; and the extension of Tozeret Ha'aretz Street. Open spaces between buildings will host various-sized commercial establishments, enriching the urban environment.

"This represents yet another demonstration of real estate developers' confidence in the potential for creating fresh residential, commercial, and employment initiatives," the Israel Land Authority said.

"We will persist in collaborating with our partners in government and local authorities to meticulously strategize and craft the residential, employment, and commercial landscape nationwide, ensuring it aligns with the evolving requirements of a burgeoning populace in the short and long run."